Language
DEEN
Market analysis··2 min read

Federal Cabinet approves measures against speculation with problem properties

The Federal Cabinet has adopted a draft action plan designed to provide local authorities with enhanced tools for dealing with neglected properties.

AI generatedFederal Cabinet approves measures against speculation with problem properties – AI-generated illustrative image
Federal Cabinet approves measures against speculation with problem properties. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The Federal Cabinet has approved the draft of a Federal Government action plan against welfare benefit abuse and exploitation, particularly in the context of EU immigration. This plan includes measures that directly impact the handling of problem properties and are intended to provide local authorities with new avenues for action. The aim is to curb speculation involving properties that exploit people's hardship or lead to the neglect of entire neighbourhoods.

The Federal Minister for Housing, Urban Development and Building, Verena Hubertz, commented on this decision. She emphasised that speculators or actors who profit from the distress of others will face consequences in the future. Both the residents of such properties and the affected neighbourhoods are suffering. The Federal Government intends to counteract this development.

Extended powers for local authorities

A central component of the action plan is the strengthening of local authorities through a 'Building Code upgrade'. This upgrade is intended to provide local authorities with tools to more effectively tackle neglected properties. It is envisaged that local authorities will have easier access to dilapidated buildings in the future. This will facilitate the inspection and assessment of the condition of these properties.

Furthermore, the exercise of pre-emption rights by local authorities will be simplified. This will enable them to have preferential access when problematic properties are intended for sale, in order to steer a positive development. As a last resort, local authorities will also have the instrument of expropriation at their disposal, should owners refuse to refurbish their properties despite official orders.

The Minister highlighted that challenges of this kind cannot be solved in isolation within departmental boundaries. The action plan against welfare benefit abuse is therefore of great importance, as it links building law instruments with measures from other departments. This cross-departmental cooperation is intended to help remove the basis for criminal activities and sustainably improve living conditions and quality of life in the affected areas.

  • Easier access to dilapidated buildings for local authorities.
  • Simplified exercise of pre-emption rights by local authorities.
  • Possibility of expropriation as a last resort in cases of failure to refurbish.
  • Combination of building law instruments with measures from other departments.

Looking for
a real estate
agent?

Michael Freitag — founder of FREITAG® Immobilien
Michael Freitag
Founder of FREITAG® Immobilien GmbH
More than 15 years of experience in Bavaria & surroundings
— FREITAG Immobilien

Your discreet partner for institutional transactions in German-speaking Europe.

As a premium real estate firm based in Munich we advise investors, family offices, developers and long-term holders on the acquisition, sale and valuation of residential, income and commercial properties — confidential, close to the market and on equal terms.

3.600+
municipalities on our market radar
48 h
first assessment of your property
Off-market
discreet circle of buyers
DACH
DE · AT · CH
— Confidential contact

Let us talk about your portfolio.

Acquisition profiles, off-market opportunities, valuations or development enquiries — we reply personally within 24 hours, NDA as a matter of course.

Phone
+49 (0) 89 158 90 140
Email
E-Mail anzeigen
Office
Munich
More news
Most read in the journal